Section 280-RICR-20-70-21.9 - Election to Pay Sales or Use TaxA. A person engaged in the renting or leasing of tangible personal property may elect to pay the tax as measured by the cost of the property upon acquisition. Such election shall be exercised by the payment of the sales tax to the seller or by filing the required use tax return on or before the due date. If the lessor elects to pay the tax as measured by the cost of the property upon acquisition, then the lessor, in this instance, is not a retailer and gross receipts paid under the lease are not subject to sales and use tax.B. If a lessor does not make the election as provided in § 21.9(A) of this Part, the lessor shall be deemed to be a retailer. The lessor is then required to obtain a sales tax permit and collect and remit sales tax in accordance with §§ 21.7 or 21.8 of this Part, whichever is applicable. Such permittee shall provide the supplier of the tangible personal property with a resale certificate at the time of purchase.C. Payment of sales or use tax by a contractor or other lessor on equipment purchased for his /her own use and so used does not exempt a subsequent rental or lease of the equipment from the sales tax.D. If the sole use of the property by a retailer, other than retention, demonstration or display in the regular course of business is the rental or lease of the property while holding it for sale, the retailer may elect to pay the use tax as measured by the cost of the property to the retailer. Such election shall be exercised by reporting and paying the use tax on the sales tax return for the month in which the property is first so rented or leased. Upon the subsequent sale of such property, the person making the sale shall include the full amount of the selling price in his or her gross receipts and shall pay the sales tax thereon.E. If a lessor of tangible personal property dissolves, reorganizes or merges with another company and the transfer of tangible personal property is not subject to tax pursuant to R.I. Gen. Laws § 44-18-20(d)(2), the transferee is subject to the same rights and liabilities as the transferor with regard to the property transferred as if the transfer had not occurred.280 R.I. Code R. § 280-RICR-20-70-21.9